Ballots to £0 out Feb 22
Heppner City Council rules
on tippage distribution
..... ii , i 1( iii
Bessie Wetzell Newspaper Library
l niversity of Oregon
Eugene, OR 97403
VOL. 127
NO. 3
10 Pages
Wednesday, January 16, 2008
By David Sykes
Morrow County, Heppner, Oregon
Morrow County School District earns
highest level on audit report
By April Sykes
The Morrow County
School D istrict, at th eir
regular m eeting M onday
night at Heppner Elemen
tary School, learned from
Robert Armstrong o f Oster
Professional Group, Certi
fied Public Accountants, that
the district received an ‘‘un
qualified opinion,” which
is the highest level, on its
audit report. As a result, he
said, the district received no
management letter.
Armstrong told the
board that O s te r’s audit
o f the d istric t’s financial
statem ents did not reveal
any noncom pliance, and
did not identify any signifi
cant deficiencies in internal
control over major federal
programs.
Armstrong said that
as the result o f new auditing
standards, O ster did note
one “significant deficiency
in internal control over fi
nancial reporting”, related
to the district’s inability to
prepare the GAAP (govern
ment auditing standards)
financial statement. “Other
than that, it was a wonderful
audit,” said Armstrong.
He told the board
that the district had sev
eral options with regard to
the deficiency. One option
would be to hire someone
within the district to prepare
the financial statement; an
other would be to hire an
other independent CPA firm;
with the third option being
to “keep things where they
are,” said Armstrong.
According to the au
dit report, the district had
$33,165,236 in total assets
as o f June 30, 2007, com
pared to $34,198,062 as of
June 30,2006; $26,433,917
in total lia b ilities, com
pared to $28,579,607 last
year; and $6,731,319 in
total net assets, compared to
$5,618,455 last year.
T he rep o rt stated
that the district's net assets
increased by $1.1 million
with property tax revenues
d ecreasing by about $.2
million; state revenues in
creasing by about $.9 mil
lion; other state, local and
special programs’ revenues
increasing approxim ately
$.6 million and expenditures
for instruction and support
services increasing by $.7
million.
The audit noted that
the d istrict had invested
$20.5 m illion in capital
assets as of June 30, 2007,
and had $26 million in total
bonded dept consisting of
general obligation bonds
and pension bonds. The
audit report stated that the
State School Fund provided
50 percent o f the district’s
program resources for the
year.
The report also not
ed that the district spent
$9,194,800 for instruction
for regular program s and
$3,337,219 for special pro
grams; $408,313 in student
support services; $500,014
in instructional staff sup
port se rv ic e s; $ 449,593
for general administration;
$1,564,534 for school ad
ministration; $3,712,015 for
business serv ices; $336,109
for central support services;
$219,854 for the supple
mental retirement program;
$894,451 for food serv ices;
$2,184 for community ser-
vices;$247,552 for facilities
construction and improve
ment; and $3,607,816 for
debt service. Total expendi
tures were $24,474,544.
On the revenue side,
the district took in $7,016,845
in taxes; $2,792,155 from
“ local sources” ; $92,390
from “intermediate sourc
es”; $12,454,718 from the
state; $1,595,519 from the
federal governm ent; and
$2,889 from other sources
for $23,954,516 in total
revenue.
The budget for the
2007 fiscal year shows $26.5
million in total appropria
tions, compared to $28.7 the
prior year, “primarily due
to a $.5 million decrease in
capital projects and a $1.7
million decrease in bonded
debt,” according to the re
port.
Also at the meeting,
the board:
-h e a rd from d is
trict Superintendent Mark
Burrows that the district’s
grow th has slowed. “ En
rollment numbers have flat
tened,” said Burrows. “The
projected growth of five per
cent, w e’re just not seeing,”
he said. The district reported
2192 students district-wide
as o f January 2, but figures
are now back up to 2227,
he said.
As o f the January
2 report, A.C. Houghton
Elem entary, Irrigon (pre
kindergarten through grade
four)-335; Heppner Elemen
tary School (kindergarten
through grade six)-185; Hep
pner High School (grades
seven through 12)-225; Ir
rigon Elem entary School
( grades five-six)-125; Ir
rigon High School (grades
seven-12 w ith one sixth
grader)-312; Riverside High
School, Boardman (grades
seven th ro u g h 12)-3 88;
Sam Boardman Elementary
(grades kindergarten through
three)-304; Windy River El
ementary, (Boardman )-222;
Morrow Education Center
(M orrow C ounty School
District)-22; MEC (Umatilla
Service D istrict)-74. The
board has scheduled a work
session to revlew enrollment
and infrastructure.
-approved a resolu
tion to spend $10,000 in
unanticipated revenue for an
advanced placement grant.
The monies w ill be used for
instruction and staff' devel
opment at Riverside High
School.
Continued on Page two
ALL NEWS AND ADVERTISEMENT DEADLINE:
MONDAYS AT 5:00 P.M.
The Heppner City Coun
cil Monday night approved
a resolution spelling oMt
how it would handle a large
influx o f new money if a
tippage fee resolution is ap
proved by voters in the next
election.
The city and the county
had been w rangling over
who should control close
to $1 m illion in tippage
money, or money received
from dumping fees at the
large Finley Buttes Landfill
in Morrow County.
Five cities in the county
had banded together and
placed a ballot measure on
the March election that
would eventually redistrib
ute 75 percent of the money
from the county general
fund to the cities.
Several meetings and ne
gotiating sessions had been
held but no compromise was
reached. The cities had said
they would take the issue to
the voters if they were un
able to reach an agreement
with the county. Recently
they followed through on
that threat, and, according to
the county clerk, the ballots
should be mailed out around
Feb. 22. Voters will have
until March 11 to vote.
If approved by voters
b eginning in fiscal year
2008-2009 the ordinance
would require the county
to give up 25 percent o f
the tippage fees to cities.
In 2009-2010 that would
jum p to 50 percent and in
2010-2011 it would top out
at 75 percent.
The ordinance stipulates
that the cities’ portion will
be divided in half, w ith
one half the funds divided
equally among the cities,
and the other half divided
according to voter precinct
population.
Based on current voter
reg istratio n the H eppner
G azette-T im es com piled
the below table showing
the approxim ate am ount
each city will receive over
the next three years, based
on a tippage income o f $1
m illion do llars. Tippage
income and voter registra
tion could go up or down so
the below figures are only
an approximation based on
today's figures.
Morrow County $12,000;
County Fair $30,000; Wild
life Serv ices $25,016; Water
blaster $7,246; Soil & Wa
ter C onservation D istrict
$35,000; Extension Serv ice
$ 8 2,723; Irrigon Board-
man Em ergency Services
$12,000; and N eeds and
Issues $235,000.
Tallman said if the county
loses 75 percent of the tip-
page m oney it would be
impossible to fund all the
current county serv ices. He
indicated it would be up to
the budget committee to de
cide which county serv ices
to fund and which to cut.
Concerns have arisen that
people and organizations
from unincorporated areas
o f the county would not
be represented in budgets
and funding if the tippage
money were shifted from
the county to the cities. The
cities group has tried to al
leviate those concerns say
ing they would make sure
it is spent throughout their
“communities” and not just
w ithin the city limits. To ad
dress the concerns of people
outside the city limits, the
Heppner City Council held
a special meeting Jan.3 to
address the handling o f the
tippage money.
Several concepts in dis
tribution o f funds were dis
cussed including concerns
that g ro u p s such as the
Heppner Day Care and the
Neighborhood Center, which
currently receive funds from
the county, would lose the
money and the cities should
pick up the funding.
At the special meet
ing M ayor Les Paustian
said that the Neighborhood
Center and Day Care Center
are South Morrow County
projects and he wants to
ensure that these are funded
fairly am ong lone, Lex
ington, and Heppner if the
money is received and that
the projects are not going to
be dropped.
A resolution worked
out at the special meeting
was approved at Monday's
council meeting.
The resolution states that a
five person committee shall
be appointed by the city of
Heppner council to award
the tippage fees. At least
two of the appointees must
monies shall not be limited
to those entities operating
solely within the city limits
proper, but shall be limited
to those entities whose ac
tivities are for the "public
benefit” . “Public benefit”
includes but is not limited
to, purposes designed to
educate, prov ide health care,
public safety, recreation,
youth programs, transporta
tion, and serv ices to senior
citizens.
The resolution also stat
ed that organizations and
groups shall make applica
tion to received tippage
funds, and that city could be
one o f those groups.
The resolution also stated
in part, that "It is the expec
tation that these funds will
be spent for the creation,
developm ent, expansion,
enhancement o f facilities,
p ro g ram s, and s e rv ic e s
within the voting districts
o f the Heppner area.”
While the resolution does
cover some o f the concerns
o f people in the Heppner
“area” about tippage fee
distribution, it covers only
the Heppner portion o f the
funds. How o th e r c itie s
distribute those funds is
up to each individual city
council.
O th er business
In other business at Mon
day's Council meeting:
The council accepted the
resignation o f councilman
George Koffler. Koffler has
sold his home in Heppner
and is moving outside the
city limits. The city w ill be
taking applications o f citi
zens interested in serving on
the council.
The city settled up a law
suit with Moore Excavation,
contractor on the city's wa
ter renovation project. The
city and Moore had been at
odds over certain portions of
the work done on the proj
ect. Under the agreement
the city will release $58,000
in retained payments, plus
pay Moore an additional
$37,000.
The council signed a lease
agreement with J im Dick
enson for the office space
(formally the dentist office)
behind city hall). Dickenson
plans to use the office for
a chiropractic office and
will pay the city $450 per
month.
1st y e a r
B o a r d m a n 2 3 .3 8 %
H e p p n e r 2 6 .7 8 %
l o n e 8 .8 6 %
I r r ig o n 3 3 .2 2
L e x i n g t o n 7 .7 6 %
1 2 5 ,0 0 0 /5
25,000
25,000
25,000
25,000
25,000
1 2 5 .0 0 0 * p e r c e n t
29.225
33,475
11,075
41,525
9,700
T o t a l:
54,225
58,474
36,075
66,625
34.700
50,000
2nd year
2 5 0 . 0 0 0 /5
50.000
50,000
50,000
. 50,000
2 5 0 .0 0 0 * p e r c e n t
58.450
66.9 5 0
22.150
83.050
19,400
T o t a l:
108,450
116,950
72.150
133,050
69,400
3rd year
3 7 5 . 0 0 0 /5
75,000
75.000
75,000
75.000
75.000
3 7 5 ,0 0 0 * p e r c e n t
87,675
100,425
33.225
124.575
29.100
T o t a l:
162,675
175,425
108.225
199,575
104,100
A pproxim ate breakdow n
Currently $990,000 in yearly
tippage money goes directly
into the county general fund
and is not earmarked for any
particular programs, how
ever earlier County Judge
Terry Tallman provided a
list o f what he considered
“community” expenditures
to the Heppner Gazette. The
spending included: Neigh
borhood C enter in South
of tippage money to cities
reside outside the city limits
but within the area consid
ered "the Heppner area.”
Members o f the committee
w ill serve one year and w ill
serve at the pleasure of the
city council.
The resolution stated that
the tippage money will be
kept as a separate city fund
and that distribution o f any
Corps plans
open house
The US Army Corps nof
Engineers plans on holding
an open house sometime in
February concerning the
proposed long-tern contract
with the local irrigation dis
trict. The Corps said a firm
date will be set later. The
notice w ill be printed in the
Gazette-Times.
1 0% O F F P A R T S |
A N D LA B O R
m2f)
through February, 2008 CUE]
Morrow County Grain Growers
Lexington 989-8221 * 1-800-452-7396
For f»rm equipment, visit our web site at www meggnet